LONDON, Feb 5 (Reuters) - GlaxoSmithKline flagged apick-up in growth this year as productivity in its drug researchlabs improves and pressure on sales in China moderates followinga damaging bribery scandal in the country.
Britain's biggest drugmaker said on Wednesday it expected2014 sales to increase by around 2 percent on an ex-divestmentbasis at constant exchange rates, after a 1 percent rise in2013. Earnings per share (EPS) are forecast to rise by 4 to 8percent.
The prediction does not take into account the negativeimpact of a strengthening pound.
Reported sales in the fourth quarter of 2013, which wereimpacted by the strength of sterling, rose 2 percent to 6.91billion pounds ($11.3 billion), generating "core" EPS down 7percent at 30.1 pence.
Analysts, on average, had forecast sales of 6.84 billionpounds and core EPS, which excludes certain items, of 30.2pence, according to Thomson Reuters.
GSK Chief Executive Andrew Witty has been focusing thecompany in recent quarters by spinning off non-core assets likethe Lucozade and Ribena drinks brands, together with certainolder drugs, as he prepares for the roll-out of new medicines.
Last year, GSK topped the industry league table by winningU.S. approval for five new drugs and the group said it plannedto launch late-stage clinical trial on around 10 new drugs inthe next two years.
While there have also been setbacks - a cancer vaccine andan experimental heart drug both failed clinical tests late lastyear - the company's overall returns on research and development(R&D) are improving.
GSK, which is the only major drugmaker to report itsinternal rate of return on R&D investment, said that returns hadnow reached 13 percent, up from 12 percent in 2012 and 11percent in 2010.